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The Greater Manchester region has emerged as a focal point in the ever-evolving landscape of the UK rental market in 2023, with a keen emphasis on property investment and buy-to-let opportunities. Notably, three areas within Greater Manchester, including Wrexham—recently elevated to city status—have garnered attention for their prominence. This analysis sheds light on the dynamics of the region's rental market, emphasising its resilience and the challenges it faces.
Wrexham's prominence is underscored by its eightfold increase in inquiries per available property compared to the national average. Rightmove's data further identifies Redbridge in London as the second busiest market, receiving an average of 49 inquiries per rental property, closely followed by Tameside and Stockport in Greater Manchester, both with an average of 48 inquiries in 2023.
Rightmove's comprehensive analysis, covering 360 local authorities across the UK, measures inquiries as expressions of interest from prospective tenants to view a rental property. This method highlights the intense competition within Greater Manchester, as renters face a challenging scenario with high demand and limited housing supply.
The nationwide trend of increased rental inquiries has had a pronounced impact on rental prices. Rightmove reports a tripling of inquiries per property, from an average of six in 2019 to 20 in 2023. Consequently, rental prices have surged by 31%, reaching an average of £1,279 per month in November 2023. This escalation in rental costs is a direct result of the fierce competition for available properties.
Contrary to historical patterns dominated by London, Rightmove's data reveals that Greater Manchester has become home to several fiercely competitive rental markets. Factors such as heightened demand and landlords divesting their properties contribute to this phenomenon. Apart from Wrexham, other areas within Greater Manchester, including Tameside and Stockport, are experiencing substantial rental inquiries, amplifying the competitive rental landscape.
Local letting agents in Wrexham attribute the surge in rental inquiries to a wave of landlords selling their properties during the pandemic. Vaughan Schofield, owner at Belvoir letting agents in Wrexham, notes, "For a three-bed detached or semi-detached house on a good street in Wrexham, we could receive 100 enquiries for the property." The imbalance between supply and demand has led to significant rent increases, with Wrexham witnessing a 35% rise in average advertised rent since 2019.
While signs of improvement in the supply-demand balance are evident, the journey toward pre-pandemic market levels is ongoing. Rightmove forecasts a 5% increase in rents by the end of 2024 outside of London, with a 3% increase in the capital. The region's property experts anticipate a gradual return to market normalcy, but challenges persist due to sustained high tenant demand and a lower-than-ideal number of available rental properties.
Greater Manchester's rental market in 2023 showcases both resilience and challenges, with Wrexham at the forefront of rental activity. As the region navigates through increased competition and rising prices, early signs indicate a slow but promising shift toward a more balanced market in 2024. The Greater Manchester rental landscape continues to be a dynamic and crucial aspect of the broader UK housing market.
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